Plant-based milk market set to reach US$7.3B by 2032 

GLOBAL – The global plant-based milk market is poised for significant growth, projected to reach US$7.3 billion by 2032, driven by increasing consumer demand for healthier and sustainable dairy alternatives. 

Reported by Allied Market Research, the market, valued at US$2.8 billion in 2022, is expected to grow at a compound annual growth rate of 10.3% from 2023 to 2032. 

This surge is fueled by growing awareness of health benefits, environmental concerns, and ethical considerations surrounding traditional dairy production.

Plant-based milk, derived from sources such as almonds, soy, oats, and coconuts, has become a popular choice for consumers with lactose intolerance, dairy allergies, or those adopting vegan and vegetarian lifestyles. 

The versatility of these products, used in everything from coffee to cooking, has broadened their appeal. 

“Consumers are increasingly seeking alternatives that align with their health and ethical values,” said a spokesperson from Oatly, a leading plant-based milk producer. 

“Our oat milk, for instance, offers a sustainable and nutritious option that resonates with today’s conscious shoppers.”

North America led the market in 2022, accounting for a significant share due to heightened awareness of plant-based diets’ benefits, including lower calorie and cholesterol content. 

The region’s dominance is expected to continue, with companies like Califia Farms and Pacific Foods of Oregon expanding their offerings to meet demand. 

In Asia-Pacific, rapid growth is anticipated, particularly in countries like China and India, where rising incomes and a large vegan population drive consumption.

Despite the promising outlook, challenges persist. 

The nutritional profile of plant-based milk can vary, with some products lacking the calcium and vitamin D naturally found in dairy. 

While fortification addresses this, bioavailability remains a concern. Additionally, rising production costs and fluctuating prices of raw materials like almonds and soybeans could hinder growth. 

“We’re working to optimize our supply chain to keep products affordable,” noted a representative from Danone, a key player in the sector.

The market’s expansion is also supported by improved accessibility, with supermarkets and online platforms stocking a wide range of plant-based milk varieties. 

Environmental sustainability further bolsters demand, as plant-based milk production generally requires less water and land compared to dairy farming. 

Innovations in flavors and formulations, such as Ripple Foods’ pea protein-based milk, are attracting new consumers, particularly in the retail and household segment, which held a 42% market share in 2022.

As consumer preferences continue to shift toward health-conscious and eco-friendly choices, the plant-based milk market is set to thrive, reshaping the global beverage industry through innovation and sustainability.

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